Prolific author, lawyer and former banker Charles Morris presciently laid out a likely course of write-downs and defaults on assets — a year ago — well before Lehman collapsed in September 2008, followed by the global credit meltdown. But given this year’s stock market bull run, all is OK, no?
Hardly, says Morris. “We may have reached a trough” in the economy, he says, but we’ll likely “bottom bounce” for some time.
Morris notes the subprime crisis and credit meltdown still are unraveling, and American consumers won’t be able to spend their way out of the mess this time. For years, consumer spending has driven about 70 percent of GDP, or U.S. economic activity. “We have to get a different model,” says Morris, author of “The Two Trillion Dollar Meltdown.”